Home-brand margarine not popular with high-income grocery buyers

Supermarket brands have made their mark in the margarine market, where they currently rank third (after traditional favourites Flora and Meadow Lea) among Australia’s grocery buyers. However, grocery buyers from higher-income households are not sold on it, according to the latest findings from market research organisation Roy Morgan Research.

In the year to March 2014, 52 per cent of grocery buyers bought margarine in an average four-week period. Grocery buyers in households earning less than $60,000 were more likely to buy margarine (59 per cent) than those in households earning $60,000 to $120,000 (51 per cent) and $120,000 or more (48 per cent).

Twelve percent of grocery buyers in households earning under $60,000 per year bought supermarket brand margarine in an average four-week period, compared to 10 per cent of those in households earning $60,000 to $120,000, and 6 per cent of those in households earning $120,000 or more.

Flora and Meadow Lea still favourites

Global giant Flora and Aussie institution Meadow Lea were the top brands, with 16 per cent and 11 per cent of grocery buyers respectively purchasing them in an average four weeks. Supermarket brands were third most popular, purchased by 9 per cent of grocery shoppers. While Flora and Meadow Lea were popular across different income groups, supermarket brands were markedly less popular among the highest household income group.

“Supermarket brands have earned a place in the Australian shopper’s basket for a large number of food items, and margarine is no exception,” said Angela Smith, Grouo Account Manager Consumer Products Roy Morgan Research. “Though our data doesn’t tell us the reason for the popularity of supermarket brand margarine, it could very well be due to their lower price — as indicated by their high penetration among low-income groups. Shoppers from higher-income households tend to prefer butter (which tends to be more expensive),” she said.

Different types of consumers and their margarine preferences

Ms Smith said types of consumers Roy Morgan Research called Rural Traditionalists, Strugglestreet, Real Working Class and Fringe Dwellers are far more likely than the average Australian grocery-shopper to buy supermarket brand margarine in any given four-week period. She said people from these groups were usually retired, unemployed or working in low-paying jobs, lived in blue-collar suburbs or regional areas, and did what they could to make their limited budget stretch further.

“On the other hand, those in more affluent areas, such as confident Bluechips, Humanitarians and Progressive Thinkers, are less likely to buy supermarket brand margarine,” Ms Smith said. “Whether they’re young or mature, these individuals enjoy the finer things in life, dine out often and tend not to deny themselves luxuries,” she said.